Home Opportunity Program

The Home Opportunity Program (HOP) promotes homeownership for low-income households in Alaska. The program is funded by HUD, the HOME Investment Partnerships Program through Alaska Housing Finance Corporation (AHFC), and is administered by Alaska Community Development Corporation for the Kenai Peninsula and the Mat-Su Borough area.

Applicants who qualify can receive down payment assistance (if required by primary lender); up to $3,000 in closing cost assistance; and if necessary to achieve affordability, a buy-down of the first mortgage (see loan limits).

Participation with a lending institution that offers mortgage loans is required. The lending institution is solely responsible for approving or denying the primary mortgage loan. The applicant should contact a lending institution for qualifications for home purchase and to determine the amount of the primary loan that they quality for.

Current participating lenders with the HOP program in the Mat-Su Valley and Kenai Peninsula are Wells Fargo Home Mortgage, First National Bank of Alaska, Alaska USA Mortgage and USDA Rural Development.

Click here to request an application through the U.S. Mail

Frequently Asked Questions about the
Home Opportunity Program

1. What is the Home Program (HOP)?

The Home Opportunity Program (HOP) assists with and promotes homeownership for low-income households in Alaska. This program is funded by HUD, the HOME Investment Partnerships Program through Alaska Housing Finance Corporation (AHFC), and is administered by Alaska Community Development Corporation. Funding is currently available for low-income Homebuyers in the Mat-Su Borough and the Kenai Peninsula

2. Who is Alaska CDC?

Alaska Community Development Corporation (Alaska CDC) is a private non-profit corporation. Alaska CDC administers HOP assistance in the Mat-Su Borough and the Kenai Peninsula and helps qualify and approve applicants for assistance.

3. Who can participate in HOP?

Individuals and families who have an annual income that is below established income guidelines (see below) and do not own another home (the HOP assisted home must be the only home the buyer’s own and it must be their primary residence).

4. What are the income guidelines and assistance limits?

HOP funds may only be provided to an eligible low-income household. Low-income is defined as less than 80% of the median income as determined and regionally adjusted by HUD. The HOP loan assistance limit is $20,000 (except households below 60% of median income may qualify for a $30,000 limit), not to exceed $3,000 in closing costs,and the payment ratio on the first mortgage should not be less than 25% of the buyers gross income used to qualify for the first mortgage. Current income limits for the Mat-Su Borough and Kenai Peninsula are:

At 80% of median income
Mat-Su Borough Kenai Peninsula
Household Size Maximum Income Maximum Income Maximum HOP Loan

              1        $39,400                 $38,200                    $20,000
            2        $45,050                 $43,650                    $20,000
              3        $50,650                 $49,100                    $20,000
              4        $56,300                 $54,550                    $20,000
              5        $60,800                  $58,900                    $20,000
              6        $65,300                 $63,300                    $20,000
               7        $69,800                   $67,650                    $20,000
               8        $74,300                   $72,000                    $20,000

At 60% of median income
Mat-Su Borough Kenai Peninsula
Household size Maximum Income Maximum income Maximum HOP Loan

               1        $29,580                    $28,620                     $30,000
              2        $33,780                    $32,760                     $30,000
              3        $38,040                    $36,840                     $30,000
              4        $42,240                    $40,920                     $30,000
              5        $45,600                    $44,220                     $30,000
              6        $49,020                    $47,460                     $30,000
              7        $52,380                    $50,760                     $30,000
              8        $55,740                    $54,000                     $30,000

5. What type of assistance is available?

HOP funds may be used for one or more of the following activities for each homebuyer assisted:

i.) Down payment assistance (if required by primary lender).

ii.) Buyer’s closing costs, not to exceed $3,000.

iii.) If necessary to achieve affordability, a buy-down of the first mortgage (see loan limits). For the purpose of this assistance activity, the payment ratio on the first mortgage should generally not be less than 25% of the buyer’s gross income used to qualify for the first mortgage.

6. What are the terms of the assistance?

The HOP homebuyer assistance provides zero interest rate loans to low-income homebuyers with the first $10,000 conditionally forgivable over a five-year period. HOP funds provided to a homebuyer are subject to recapture (repayment) in the event that the assisted homebuyer does not continue to own and occupy the property purchased with HOP assistance for the required “period of affordability.” Funds provided under the HOP program will be secured by a Note and Deed of Trust executed by the homebuyer. The portion of the loan that is not forgiven is a zero interest loan held by a note that is due upon eventual sale, or refinancing of the home.

7. Other eligibility conditions?

Homes purchased or constructed using HOP funds must meet required property standards and must be the assisted homebuyer’s principal residence. Homes built before 1978 must undergo a visual assessment and possible stabilization of lead-based paint. Homes purchased or developed with HOP assistance must be of a non-luxury nature and can not exceed $263,600 in value in the Mat-Su Valley and $200,160 in value on the Kenai Peninsula . The homebuyer may not be in arrears on any child support obligation. The homebuyer must attend a homebuyer education class approved by AHFC.

8. Where is the primary mortgage financing obtained?

Homebuyers assisted with HOP funds are expected to obtain primary mortgage financing through AHFC or another secondary market lender, available through banks and lending institutions that offer mortgage loans.

9. Primary loan pre-qualification:

The lending institution is solely responsible for approving or denying the mortgage loan. The primary lender should qualify a homebuyer under the financing program that provides the lowest interest rate possible given the homebuyer’s eligibility, and should determine the primary loan amount for which the homebuyer qualifies, using standard underwriting principles.

10. HOP Funding limitations:

HOP assistance may not be used to reduce the amount of the primary loan for which the homebuyer otherwise qualifies. HOP assistance for first mortgage buydown should be provided only if the primary financing and any other secondary financing available is not adequate to satisfy the financing requirements of the qualifying home to be purchased. A minimum of $1,250 (in total HOP assistance) must be provided to a qualifying homebuyer or HOP assisted unit.

11. Funding available:

HOP assistance funding for the Mat-Su Borough and the Kenai Peninsula is very limited and will be available on a first come, first served basis.

12. How does one apply for the HOP Program?

Applications are available at the Alaska Community Development Corporation office in Palmer or through one of the five participating lenders. Current participating lenders in the mat-Su Valley and Kenai Peninsula are Wells Fargo Home Mortgage, First National Bank of Alaska, Alaska USA Mortgage and USDA Rural Development.

Click here to request an application through the U.S. Mail

Waiting lists will be established for the current and future year’s funding.